Next Fed Chair: Obama, Lawmakers Offer Their Takes

President Barack Obama outlined in more detail than he has previously what criteria he’s considering in deciding who should succeed Federal Reserve chairman Ben Bernanke when his term ends in January. Mr. Obama, in an interview with the New York Times, said he’s in no rush and wants to nominate someone who understands the Fed’s “dual mandate” of keeping unemployment low and inflation in check.

On Sunday, senators reminded Mr. Obama it’s not solely his choice to make – they have to confirm his pick — and continued a growing push to topple a leading contender, Lawrence Summers, who previously served as a top economic aide to Obama and served as a Clinton administration Treasury Secretary. Lawmakers criticized Mr. Summers’ past policy decisions, particularly related to Wall Street regulation.

“I think a woman – a qualified woman would be a very positive thing for this administration,” Ms. Feinstein said.

Sen. Bernard Sanders, (I., Vt.), meanwhile, sent a letter to Mr. Obama on Sunday blaming decisions made by Mr. Summers and other policymakers for contributing to “the worst economic crisis since the Great Depression” and said it “would be a tragic mistake to nominate anyone as chair of the Fed who continued those failed policies.”

So who will Mr. Obama pick? His Treasury Secretary, Jacob Lew, wasn’t offering any hints as he blistered the airwaves Sunday, saying only that both Mr. Summers and Ms. Yellen are “both extraordinarily talented people.”

Mr. Obama, meanwhile, offered a more detailed take, saying one of his top priorities is finding someone who will focus on economic growth and jobs, as long as inflation is low and there are no financial bubbles brewing.

“What I’m looking for is somebody who understands the Fed has a dual mandate, that that’s not just lip service; that it is very important to keep inflation in check, to keep our dollar sound, and to ensure stability in the markets. But the idea is not just to promote those things in the abstract. The idea is to promote those things in service of the lives of ordinary Americans getting better. And when unemployment is still too high, and long-term unemployment is still too high, and there’s still weak demand in a lot of industries, I want a Fed chairman that can step back and look at that objectively and say, let’s make sure that we’re growing the economy, but let’s also keep an eye on inflation, and if it starts heating up, if the markets start frothing up, let’s make sure that we’re not creating new bubbles.”

Mr. Obama added that while he’s made progress on choosing a successor “I have not made a final decision. I’ve narrowed it down to some extraordinarily qualified candidates.”

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